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Angola owes US $ 20.1 billion to China

The head of the Finance portfolio said that the issue of China’s financing to Angola has generated a lot of controversies when analyzing the quality of the works carried out by Chinese contractors.

Angola owes US $ 20.1 billion to China www.africanstand.com


(African Stand) — The real value of Angola’s debt to China is estimated at US $ 20.1 billion and is the country’s largest creditor. The accounts were presented by the Angolan finance minister, Vera Daves, Plataforma Media reported.

Of this amount, 10 billion dollars went to the capitalization of Angolan oil company Sonangol and 10.1 billion went to finance several investment projects.

In a press conference, the head of the Finance portfolio said that the issue of China’s financing to Angola has generated a lot of controversies when analyzing the quality of the works carried out by Chinese contractors.

However, he explained that the quality of the works does not depend on the creditor, who are Chinese banks, but on the Angolan State, which must supervise them, and on the contractors who execute them.

Vera Daves affirmed that in the act of paying the paying bank is based only on the invoices presented on the execution of the works. The bill is paid in China and the money does not circulate in the Angolan economy.

“There is always a very strong debate about deliverables, the quality of the works, this does not depend on the financier, but on the relationship between the Angolan State and the contractors”, he said, explaining that the financing entity, which is a bank, looks at the bills and not to the walls.

In relation to debt service with China, for this year 2020, valued at 2.678 million, amortizations represent 78.8%, which is 2.103, while interest represents 21.2% (567 million).

Wandukwa Henry

Written by Wandukwa Henry

Wandukwa Henry is a graduate from the University of Nairobi with a Bachelor of Computer Science and now he is an African Stand correspondent covering the East African region.

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